- The pair added to the overnight strong up-move of around 100-pips.
- The up-move seemed unaffected by some fresh USD selling pressure.
- The ongoing slump in the US bond yields weighed on the greenback.
The Canadian Dollar remained on the defensive against its American counterpart, lifting the USD/CAD pair to fresh multi-weekly tops – closer to mid-1.3300s in the last hour.
After a brief consolidation, the pair picked up the pace during the early North-American session and has now rallied over 150-pips from the previous session’s swing low to sub-1.3200 level. The positive momentum seemed rather unaffected by some renewed US Dollar selling bias, triggered by a fresh leg of a free-fall in the US Treasury bond yields.
Bullish traders took cues from a sharp fall in Crude Oil prices, which tend to undermine demand for the commodity-linked currency – Loonie. Adding to this, possibilities of some technical buying on a sustained move beyond the very important 200-day SMA – around the 1.3300 handle, further seemed to have collaborated towards accelerating the up-move.
The pair touched an intraday high level of 1.3345 – the highest since June 19, albeit quickly retreated around 15-20 pips as market participants now look forward to the release of Canadian Ivey PMI for some short-term trading impetus amid absent relevant market moving economic releases from the US.
Technical levels to watch
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